Correlation Between HAVN Life and Wesana Health
Can any of the company-specific risk be diversified away by investing in both HAVN Life and Wesana Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HAVN Life and Wesana Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAVN Life Sciences and Wesana Health Holdings, you can compare the effects of market volatilities on HAVN Life and Wesana Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HAVN Life with a short position of Wesana Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAVN Life and Wesana Health.
Diversification Opportunities for HAVN Life and Wesana Health
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HAVN and Wesana is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding HAVN Life Sciences and Wesana Health Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesana Health Holdings and HAVN Life is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HAVN Life Sciences are associated (or correlated) with Wesana Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesana Health Holdings has no effect on the direction of HAVN Life i.e., HAVN Life and Wesana Health go up and down completely randomly.
Pair Corralation between HAVN Life and Wesana Health
Assuming the 90 days horizon HAVN Life is expected to generate 1.22 times less return on investment than Wesana Health. In addition to that, HAVN Life is 1.28 times more volatile than Wesana Health Holdings. It trades about 0.18 of its total potential returns per unit of risk. Wesana Health Holdings is currently generating about 0.28 per unit of volatility. If you would invest 1.00 in Wesana Health Holdings on October 23, 2024 and sell it today you would earn a total of 3.25 from holding Wesana Health Holdings or generate 325.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAVN Life Sciences vs. Wesana Health Holdings
Performance |
| Timeline |
| HAVN Life Sciences |
| Wesana Health Holdings |
HAVN Life and Wesana Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAVN Life and Wesana Health
The main advantage of trading using opposite HAVN Life and Wesana Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAVN Life position performs unexpectedly, Wesana Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Wesana Health will offset losses from the drop in Wesana Health's long position.| HAVN Life vs. Surrozen Warrant | HAVN Life vs. Jasper Therapeutics | HAVN Life vs. Revelation Biosciences | HAVN Life vs. Wesana Health Holdings |
| Wesana Health vs. Revelation Biosciences | Wesana Health vs. Awakn Life Sciences | Wesana Health vs. HAVN Life Sciences | Wesana Health vs. Silo Pharma |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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